Manufactures bamboo picture frames

Assignment Help Financial Accounting
Reference no: EM13948517

Iguana, Inc., manufactures bamboo picture frames that sell for $25 each. Each frame requires 4 linear feet of bamboo, which costs $2.00 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $11.00 per hour. Iguana has the following inventory policies:

Ending finished goods inventory should be 40 percent of next month's sales.

Ending raw materials inventory should be 30 percent of next month's production.

Expected unit sales (frames) for the upcoming months follow:

 

 

March

295

April

270

May

320

June

420

July

395

August

445

 

Variable manufacturing overhead is incurred at a rate of $0.40 per unit produced. Annual fixed manufacturing overhead is estimated to be $8,400 ($700 per month) for expected production of 6,000 units for the year. Selling and administrative expenses are estimated at $670 per month plus $0.70 per unit sold.

   Iguana, Inc., had $11,000 cash on hand on April 1... Of its sales, 80 percent is in cash. Of the credit sales, 50% is collected during the month of the sale, and 50% is collected during the month following the sale.

 Of raw materials purchases, 80 percent is paid for during the month purchased and 20 percent is paid in the following month. Raw materials purchases for March 1 totaled $2,200. All other operating costs are paid during the month incurred. Monthly fixed manufacturing overhead includes $170 in depreciation. During April, Iguana plans to pay $3,200 for a piece of equipment.

Required:

1. Compute the budgeted cash receipts for Iguana. (Do not round your intermediate calculations. Round final answers to 2 decimal places.).

2. Compute the budgeted cash payments for Iguana. (Do not round your intermediate calculations. Round final answers to 2 decimal places.)

 3. Prepare the cash budget for Iguana. Assume the company can borrow in increments of $1,000.00 to maintain a $10,000.00 minimum cash balance.

Reference no: EM13948517

Questions Cloud

Summarize the events : Summarize the events of a recent of a well known accounting scandal. Identify how the illegal or unethical act was detected and describe the punishments that resulted.
Amount of gross profit : The acquisition included 3,000 units of knife X001, and 3,000 units of knife X002. X001 normally sells for $20 per unit, and X002 for $10 per unit. If Colicchio sells 1,000 units of X002, what amount of gross profit should it recognize
Deducted in computing the cost : Deducted in computing the cost-to-retail ratio.  Employee discounts.Abnormal shortages.Sales returns.
Donalds dresses experienced : Donalds Dresses (DD) experienced the following events in 2014 and uses the perpetual inventory method. For each event, show how cash, the balance sheet (A=L+E) and the income statement (R-E=NI) are affected.
Manufactures bamboo picture frames : manufactures bamboo picture frames that sell for $25 each. Each frame requires 4 linear feet of bamboo, which costs $2.00 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $11.00 per hour.
Basic inventory data : Basic inventory data for June are presented  for a business that employs the lower of cost or market basis of inventory valuation.
Scope management plan and change request form : In scope-out scope items: In scope items are list of requirements that are going to be implemented as part of this system - Create a time-phased budget for your example project using bottom-up estimating. As you allocate resources to the activity y..
Income statement for last month : Ark Corporation's contribution format income statement for last month
Prepare all journal entries : Prepare all journal entries, consistent with GAAP, including budgetary and encumbrance entries that the department should make in 2015.

Reviews

Write a Review

 

Financial Accounting Questions & Answers

  Assuming the preferred stock is noncumulative

Nathan's Athletic Apparel has 2,000 shares of 5%, $100 par value preferred stock the company issued at the beginning of 2014. All remaining shares are common stock. The company was not able to pay dividends in 2014, but plans to pay dividends of $22,..

  Example table caption

Introduction An introduction should be provided to present the topic to the reader. This section should provide a general background on your topic and answer questions such as: Who? What? When? Where? Why? How Much? Impact? The introduction should al..

  A diesel-powered tractor with a cost of 185000 and

depreciation by units-of-production methoda diesel-powered tractor with a cost of 185000 and estimated residual value

  Illustrates the steps in accounting cycle

Sketch a flow chart that illustrates the steps in the accounting cycle. Include any other relevant information in the chart that would apply within the steps

  Determine financial reporting of state and local government

Evaluate whether the entity's financial position improved or deteriorated through the reporting period. Speculate on the causes from your review of the financial statements.

  Evaluate the earnings per share of common stock

Evaluate the earnings per share of common stock under each of the two plans, suppose income before bond interest and income tax is $600,000.

  What is the variable product expense per unit

Fixed marketing expense totaled $13,000 and fixed administrative expense totaled $35,000. The price per calendar is $10.What is the variable product expense per unit?

  Find out the amount that rim invested in capital assets

Find out the amount that RIM invested in capital assets for that year. Assume a seven-year life and a 12% internal rate of return. What is the amount of cash flows that RIM must earn on these new projects?

  Deferred tax consequences of the valuation allowance

Saginaw Inc. completed its first year of operations with a pretax loss of $500,000. The tax return showed a net operating loss of $600,000, which the company will carry forward. The $100,000 book-tax difference results from excess tax depreciation ov..

  Calculate the synthetic forward rate from the aud

Calculate the synthetic forward rate from the AUD perspective and calculate the AUD arbitrage profits available per GBP 100,000 sold in time 1.

  Illustrate the difference in various depreciation methods

You are the new Financial Controller of Advanced Radio repairs. Write a memo to the company Chairperson identifying the internal Control weakness in this situation. State the steps to be taken to correct the weakness.

  Will you deduct this expense on your tax return

You are a sole proprietor. This year you incurred an expense of $152 for office supplies, but you have lost the receipt. Will you deduct this expense on your tax return? Explain your reasoning briefly.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd